Conclusion of an annex to the significant agreement

Current report No 22/2019

Legal basis: Article 17(1) of the Market Abuse Regulation (MAR) – confidential information                             

With reference to the current report No 61/2017 of 29 June 2017 and the current report No 3/2019 of 30 January 2019, the Management Board of Polimex Mostostal S.A. with the registered office in Warsaw (the “Company”) informs about the conclusion of Annex 2 (the “Annex”) to the agreement concerning the delivery and assembly of a combined gas and steam unit for the Żerań Power Plant in Warsaw (the “Contract”) between PGNiG TERMIKA S.A. with the registered office in Warsaw (the “Employer”) and Mitsubishi Hitachi Power Systems Europe GmbH with the registered office in in Germany as the consortium leader, Mitsubishi Hitachi Power Systems Ltd. with the registered office in Japan, Mitsubishi Hitachi Power Systems Europe Ltd. with the registered office in London and the Company as the consortium members (jointly referred to as the “Contractor”).                                                                                                         

As per the Annex, the period until the finalization of the handover protocol of the unit for operation has been extended to 40 months and 21 days from the date of conclusion of the Contract.

The amendment in question is due to the damage caused by Typhoon Jebi on 4 September 2018 in Japan. As a result of severe weather conditions, the storage site for the components of the gas turbine equipment was affected making it impossible for the Contractor to fulfil the contractual obligations in terms of the guarantee of quality and warranty for physical defects. The Ordering Party and the Contractor agreed that the event constituted force majeure and that an extension to the deadline for the Contract finalization to allow for the removal of damage was duly justified.

Other material provisions of the Contract remain unchanged.